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(Washington, DC) -- Today Congressman David Wu helped Oregon businesses by voting for the bipartisan American Jobs Creation Act of 2004 (H.R. 4520).
"Today more than at any time in our history, we operate in a global economy," said Congressman David Wu. "This vote is about fixing our international tax law and providing much needed tax relief for Oregon businesses to help create jobs."
This bill addresses American obligations under international tax law by repealing the extraterritorial income (ETI) regime while providing tax relief for manufacturing and small business. The European Union has long held that the U.S. ETI is a subsidy to U.S. exporters and is in violation of World Trade Organization agreements. The EU has had sanctions on thousands of American products, which are currently at eight percent and increasing by one percent each month.
By repealing ETI, H.R. 4520 removes harmful sanctions that are hurting American businesses and compensates for the loss of ETI benefits by permanently cutting corporate tax rates for domestic manufacturers, producers, farmers and small corporations.
Specifically the American Jobs Creation Act reduces the top corporate tax rate from 35% to 32% for domestic manufacturers and small corporations and provides significant help to small businesses with important reforms and investment incentives. The measure also includes a number of important provisions for small businesses including an extension of section 179 of the tax code, increased business deductions and numerous simplifications of small business rules. It also includes an extension of the research and development tax credit, which is important to spurring innovation and economic growth.
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